Zinio Systems, Inc. has announced the launch of a new digital magazine-publishing
service. Working closely with leading magazine publishers for more than
a year, Zinio has developed a complete solution for transforming print
editions of magazines into an interactive digital form that can be delivered
via the Internet and accessed on both laptop and desktop computers.

The Zinio solution consists of production services that convert print
magazines into digital form, offer a dedicated reading software application,
and feature a comprehensive delivery system. According to the announcement,
these services provide portability, easy navigation, and interactivity
in a digital version that's identical to print.

In addition, the Zinio service, which will be formally launched early
in the first quarter of next year, will make it easier for publishers to
attract and retain readers, provide new opportunities for generating revenue
through single-copy sales and enhanced advertising, and ultimately reduce
manufacturing and distribution costs, according to the announcement. The
company expects to have titles from the world's largest consumer and trade
publishers available at the commercial launch.

"As one of the most compelling and trusted forms of content, magazines
reach more people than any other form of media," said Kevin McCurdy, Zinio
Systems' founder and CEO. "But the traditional methods of magazine marketing
and distribution have become increasingly expensive, making it more and
more difficult for magazine publishers to operate profitably. With Zinio's
digital-magazine services, publishers will be able to take advantage of
the efficiencies of electronic-based marketing and distribution while providing
their readers with a familiar and trusted reading experience. This is a
market poised for tremendous growth. Simply put, it's the future of magazine
publishing."

Zinio has worked with IDEO, a product and user-interaction design provider,
to create an experience that is claimed to be unmatched in simplicity and
usability. Zinio is highly intuitive in mirroring the way readers experience
print magazines, while providing tools and capabilities that are only possible
with digital magazines, according to the company.

In developing its service, Zinio has worked closely with publishers
to understand the important features of the magazine business. While nearly
98 percent of adults read magazines and billions of print magazine copies
are delivered yearly in the U.S., publishers nevertheless face increasing
pressures on profits. In addition to coping with a market crowded by an
ever-growing number of titles, publishers are experiencing competition
from other forms of media and rising costs for both manufacturing and distribution
as well as reader acquisition and renewal. According to the company, Zinio
will provide publishers with new ways to address these issues.

Zinio's complete digital magazine-publishing solution comprises the
following three elements:

Zinio Production Services—Recast the layout and design of print magazines
into digital magazines, taking them one step further by embedding interactivity
and other features possible only in the digital medium

Zinio Reader—The dedicated reading software application

Zinio Delivery System—Automates the subscription-and-retrieval process
and makes it possible for readers to purchase copies of current or back
issues

The Zinio solution is designed to integrate with most existing magazine-production
and work-flow systems. The service allows publishers to enhance their relationship
with readers by providing tools that allow the publishers to better understand
reader preferences and facilitate two-way communication. In addition, the
Zinio solution lets publishers offer extended reach and new services to
their advertisers. With support for a variety of media types, the Zinio
format enhances advertisers' ability to communicate directly with their
target audiences by enabling ads to come alive through Web hyperlinks and
the integration of audio and video. According to the company, pass-along
readership will provide extended reach and help boost ad impressions.